Fidelity applies to launch Bitcoin ETF


This is big! Fidelity has filed with the SEC to launch a Bitcoin ETF that will track the price of the digital currency as measured by the performance of the Fidelity Bitcoin Index.

Fidelity Investments, established in 1946, is one of the largest asset managers in the world with $4.9 trillion in asset management as of June 2020, and a combined total customer asset value number touching $8.3 trillion.

According to CNBC, Fidelity confirmed that it filed a prospectus to sponsor a Bitcoin ETF.

Fidelity Logo

The investment giant filed a preliminary registration statement for the fund with the US Securities and Exchange Commission. The filing explains that the Wise Origin Bitcoin Trust is an exchange traded fund that issues common shares that will trade on a stock exchange that is yet to named.

As revealed:

“The Trust’s investment objective is to seek to track the performance of bitcoin, as measured by the performance of the Fidelity Bitcoin Index PR … adjusted for the Trust’s expenses and other liabilities.”

You can take a look at the Form S-1 for the details.

The sponsor of the ETF is FD Funds Management while Delaware Trust company is the trustee.

FD Funds Management, a subsidiary of Fidelity, confirmed these plans to provide financial backing. The launch of its own Bitcoin fund will let the investment giant to cement its cloud in the market for digital assets.

Fidelity’s bid to back a Bitcoin ETF is far from its first venture into the expanding world of digital currencies. It established Fidelity Digital Assets in 2018, a subsidiary that has since deployed its cryptocurrency custody and trade execution operations.

The key question here is whether the SEC will approve the ETF. The regulator has not granted any company permission to create a Bitcoin exchange traded fund to date, arguing that the market was note ready yet — despite a growing number of applications.

Analysts, however, believe it is just a matter of time.

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